After stumbling for eight days in a row, the indices look poised to clock some gains today. World markets are upbeat on hopes that the fiscal cliff negotiations in Washington are progressing well especially after Obama met Congressional leaders on Friday. We expected gains in our market on Monday itself though.
A rebound in Nifty above the 5630 levels will augur well for the time being. Asian markets are up this morning. Reports state that a better- than-forecast US home sales has brought in some cheer. US indices saw one of their best gains in months with the Dow adding over 200 points.
Amid all the temporary happiness in the global markets, one can’t ignore the fact that escalating violence in the Middle East between Israel and Islamist political group Hamas will continue to dominate attention. Oil prices have inched higher and Israel’s Defence Minister Ehud Barak said the army was prepared to invade the Gaza Strip.
The euro fell after Moody’s Investors Service stripped France of its top government bond rating. Further downgrades are expected.